Bullion & Business Weekend Report – Feb. 6

Precious metals tumbled this week as the dollar rallied to an 8-month high against the euro. The currency fell on worries over European fiscal problems, according to accounts, with debt management in Greece, Spain and Portugal taking center stage. When the greenback climbs, gold general falls while silver and platinum usually track immediately behind.

New York crude oil tumbled for a fourth consecutive week, declining 2.3 percent this week after an 8 percent fall in January.

U.S., German, French and London stocks will need to reverse course to climb out of a shallow hole they fell into in starting this month. US stocks tried on Friday, jumping late in the final hour to dramatically erase earlier losses and end a very volatile week in trading.

"The dollar just keeps gaining momentum," Tom Schweer, a senior market strategist at LaSalle Futures Group Inc. in Chicago said on Bloomberg. "Gold could fall another $20 to $40 before people start to load up again."

In weekly New York metals prices, April gold lost $31.00, or 2.9 percent, to end at $1,052.80 an ounce. Silver for March delivery ended at $14.83 an ounce, plunging $1.36, or 8.4 percent. April platinum declined $30.90, or 2.1 percent, to close at $1,475.10 an ounce.

"This may be another upcoming buying opportunity as we look at open interest and delivery notices later after the drastic selling," said George Gero, metals analyst at RBC Wealth Management, in emailed comments cited on MarketWatch.

Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

"Risk appetite has been placed in a deep freeze on the heels of yesterday’s poor US jobs report. Adding to trouble in the commodities sector is the surge in euro-oriented jitters engendered by the ‘whack-a-mole’ patterns of debt troubles that continue to spring up over various parts of the Old World," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

"Yesterday’s global margin-call will reverberate in the markets for some time to come. At the very least, some degree of irrational exuberance will be shaved off by fear, and a corresponding degree of level-headed sobriety could (should?) come in and replace it."

London Fix Charts: Silver, Gold and Platinum

(Jan 29 – Feb 5)

The London Fix is one of the most used bullion quotes around the world. The London AM fix for gold and platinum begins at 10:30am GMT (5:30am in New York), and the PM fix begins at 3pm GMT (10am in New York). The London Fix for silver begins each business day at 12pm GMT (7am in New York).

London Fix Precious Metals Prices

(Jan 29 – Feb 5)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

-6.9%

-$1.12

$15.17

Gold

X

-1.9%

-$20.50

$1,058.00

Platinum

X

-2.4%

-$37.00

$1,475.00

(Jan 22 – 29)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

-5.7%

-$0.99

$16.29

Gold

X

-0.5%

-$5.50

$1,078.50

Platinum

X

-1.8%

-$28.00

$1,512.00

(Jan 15 – 22)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

-6.7%

-$1.24

$17.28

Gold

X

-3.9%

-$44.00

$1,084.00

Platinum

X

-3.8%

-$60.00

$1,540.00

(Jan 8 – Jan 15)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

2.2%

$0.40

$18.52

Gold

X

0.1%

$1.25

$1,128.00

Platinum

X

2.0%

$31.00

$1,600.00

( Dec 31 – Jan 8 )

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

6.7%

$1.13

$18.12

Gold

X

2.1%

$22.75

$1,126.75

Platinum

X

7.0%

$103.00

$1,569.00

*Week change numbers are for Friday PM-Friday PM (Unless a time is closed for holidays)

Weekly World Business News: Oil, Gasoline, and Stocks Prices

Oil prices fell this week. On Friday, "crude-oil futures fell 2.7% in a volatile session that saw a barrel briefly dip below $70… extending a 5% slide in the previous session, as the dollar hit an 8-month high against the euro on continued nervousness over the debt woes of several European countries," wrote Polya Lesova of MarketWatch.

"Worries about Spain, Portugal, Greece and Italy are helping the dollar," Phil Flynn, vice president of research at PFGBest in Chicago, said on Bloomberg. "As long as the dollar is moving higher, commodities will be under threat."

New York crude-oil for March delivery declined $1.95 to close at $71.19 a barrel. The price is 2.3 percent lower than last week, but still 73 percent higher from a year ago.

Prices at the pump fell three-tenths of a cent between Friday and Saturday. The national average for regular unleaded gasoline is $2.661 a gallon, according to a AAA fuel report. The price is 1.7 cents lower than last week, 4.8 cents down from a month back, but still 75.1 cents higher than a year ago.

U.S. stocks rose on the final day of the week. They "erased big losses… with technology shares leading the advance, following a three-session rout that had taken the market to its lowest point since last fall," wrote Alexandra Twin of CNNMoney.com. Speculation that the European Union may propose a solution for Greece’s budget deficit was also cited for the advance.

"The markets are expecting a positive announcement out of the European Union this weekend as it relates to Greece and their debt," John Brady, Chicago-based senior vice president with the interest rates product group at MF Global Ltd, said on Bloomberg. "Although it’s unclear whether Greece will be bailed out, some in the market think the EU has no choice."

For the week, the Dow fell 0.6 percent, the S&P declined 0.7 percent and the Nasdaq ended down 0.7 percent.

Friday closing figures for the three major US indexes follow:

The Dow added 10.05 points to close at 10,012.23.

The S&P picked up 3.07 points, closing to 1,066.18.

The NASDAQ rose 15.69 points to end at 2,141.12.

And in other world markets:

The German DAX lost 98.90 points to close at 5,434.34.

The Paris CAC 40 dropped 1.06 points, to close at 3,596.70.

And the London FTSE 100 fell 78.39 points to finish at 5,060.92

Bullion and Business Articles

In related silver and gold news, interesting or quick-read articles from the week include:

Gold slides as dollar jumps to 8-month highs – MarketWatch
Gold futures slumped on Friday as a drop in the U.S. jobless rate couldn’t offset a surge in the dollar, which jumped to 8-month highs against the euro on fears about sovereign debt in Europe. Gold for April delivery fell $10.20, or 0.9%, to end at …

Gold Falls to Three-Month Low as Dollar Gain Damps Metal Demand – Bloomberg
Gold futures fell to a three-month low in New York as the dollar’s rally reduced demand for the precious metal as an alternative investment. The euro fell to an eight-month low against the greenback on mounting budget concerns in countries such as …

Whack-A-Mole, The European Edition – Jon Nadler, Kitco
Gold’s price woes mounted overnight, with prices cratering some $16 further after Thursday’s near $50 freefall. Spot gold drew close to the $1047 per ounce mark, following its worst single-day rout in 16 months. Risk appetite has been placed in a deep freeze on the heels of yesterday’s poor US jobs report. Adding to trouble in the commodities sector is the surge in euro-oriented jitters engendered by the ‘whack-a-mole’ patterns of debt troubles that continue to …

2010 Mint Coins Lead Sales, Silver Eagles Surge – CoinNews
The numismatic landscape for US Mint 2009-dated coins has remained on the sleepy side of sales since mid-December. The attention-grabbing action surrounds the new 2010 products. 2010-dated Gold and Silver Eagles made waves in January. The eagles swaggered last month toting prolific numbers. But then sales appeared to dive into nothingness as not a single sale was added to Mint registers for nearly a week. The silence was shattered on …

US Mint Eagle Bullion January Records – CoinNews
The United States Mint has closed out the month of January, publishing strong sales figures for its precious metals bullion coins. American Eagle Silver Bullion Coin demand hit a record pace. Interest in American Eagle Gold Bullion Coins was elevated, reaching the top ten in all-time January sales. The numbers are more than interesting considering several factors, including New York gold prices falling 1.1 percent in January and silver prices plunging …